#1 Rated Bankruptcy Lawyers in San Diego

How Long Do I Need to Wait Before I Can Get a Mortgage After Filing for Bankruptcy?

Many Americans have filed for bankruptcy in the last two years. The economic turmoil brought on by the coronavirus pandemic has resulted in many Americans losing their jobs or having their hours reduced. Now the prohibitions on evicting people from their homes are expiring, and many people will be wondering what they should do if they cannot pay their mortgages. 

Filing for bankruptcy can be one of the best ways to have your debts discharged so you can move forward financially. Many people are concerned about how filing for bankruptcy will affect them in the long run. They may be worried it will take a long time to rebuild their credit. Others may be concerned that they will never be able to obtain a mortgage to purchase a house. We will discuss how long most people need to wait before getting a mortgage after they file for bankruptcy.

You Need to Reestablish Your Credit

If you want to pursue obtaining a mortgage after filing for bankruptcy, you will need to understand the importance of re-establishing credit. When you file for bankruptcy, the bankruptcy is listed on your credit score, reducing your credit score. When you build up your credit, you will increase your chances of getting approved for a mortgage faster after filing for bankruptcy. You may want to pay off a secured credit card in full every month, but be careful that you do not begin incurring more debt again. 

A secured credit card functions as a debit card but allows you to have your activity reported to the three major credit reporting agencies every month. Building up your credit score with a secured credit card will show that you are focused on being financially responsible. Other options include getting an unsecured credit card, a personal loan, or a car loan to show that you are a responsible borrower with diverse credit streams. It is important that you refrain from multiple credit lines if your budget does not allow you to make payments in full.

Qualifying for a Home Loan After Filing for Bankruptcy

The waiting period for obtaining a mortgage loan depends on which type of loan you are pursuing. The type of bankruptcy you filed will also be a factor and how long it takes you before you can get a loan. While you wait to become eligible for another mortgage, there are several steps you can take. You can make sure that your credit score is accurate and that there are not any errors on your credit score that could decrease your score. You should also make timely bill payments and save as much money as possible. Lenders will want you to put down a down payment and make sure they see a history of savings.

Conventional Loans

Conventional loans are home loans that are not insured or made by a government entity. These types of loans are the most challenging to get after you have filed for bankruptcy. For example, if you have already been discharged of your debt from a chapter 7 bankruptcy, your waiting period is four years. After a chapter 13 bankruptcy discharge, you will be required to wait two years before you can obtain a conventional loan. Remember that individual mortgage lenders sometimes have their own waiting periods, so you should ask them about their specific policies.

FHA Loans

FHA mortgages are insured by the Federal Housing Administration. If you are interested in pursuing a mortgage after filing for bankruptcy, this type of loan is one of the better options. Your bankruptcy will need to be discharged for at least two years before you apply for an FHA loan if you filed for chapter 7 bankruptcy. If you filed for chapter 13 bankruptcy, you will need to wait a year after your debt has been discharged to file for bankruptcy. 

VA Loans

VA loans are only available to Veterans who have served at least 181 days during peacetime, six years of service in the National Guard, or 90 days of service time during war. These types of loans are sponsored by the Federal Department of Veteran Affairs. In order to qualify for a VA loan after bankruptcy, your bankruptcy case must have been dismissed for at least two years before you apply for the loan. However, if you filed for chapter 13 bankruptcy, you do not need to wait. You can apply for a VA loan as soon as your bankruptcy has been discharged.

USDA Loans

USDA loans are typically only available in rural areas. If you live in a rural area and meet all of the requirements, you should consider applying for a USDA loan. You can obtain a USDA loan after three years of receiving a discharge for a chapter 7 bankruptcy. After a chapter 13 bankruptcy discharge, you will need to wait a year. The bankruptcy court has the authority to approve a USDA loan during the chapter 13 process. In other words, you do not need to wait until your debt has been discharged in a chapter 13 Bankruptcy to apply for a mortgage.

Obtaining a Mortgage After a Home Foreclosure

What if you did not file for bankruptcy, but your home was foreclosed? Alternatively, what if you have gone through a home foreclosure and bankruptcy? Many people are forced to file for bankruptcy because of a pending foreclosure on their homes. You may assume that you will not be able to get another home loan after going through a foreclosure. However, many people can still qualify for another mortgage and the future. For most people, recovering from foreclosure and getting approved for another mortgage takes seven years. 

However, the process may not take seven years. Each mortgage lender has their own time frames for when they will reconsider a person who has had their home foreclosed. If the foreclosure happens before filing for bankruptcy, the waiting period starts the day of the discharge of debt. If a foreclosure took place after your bankruptcy, your discharge date would be used rather than your foreclosure date.

See What Our Clients Have To Say

Yelp Review

Roger C.

I reached out to BLC to help assist with a chapter 7 business bankruptcy and they provided excellent guidance, advice, and support through the entire process. In my case an adversarial action was filed by one of the creditors and attorney Ahren Tiller and his staff provided sound ...arguments which prevailed. Couldn’t have found a more experienced and supportive team to represent me in a tricky situation. I would highly recommend them to anyone making the difficult but sometime necessary decision to find financial relief. Read more
Yelp Review

Justin R.

Like many others before and during the pandemic, life happenings caused me to be in a financial situation to warrant bankruptcy. The BLC was super professional all the way through the entire process. Right after I paid for my Bankruptcy, I got sick and had to have surgery and recovery. Then we ...were in full Pandemic mode. They were gracious to delay my filing until I was recovered and ready to file. I could not ask for more. The process was over all quick and painless for a simple Bankruptcy like mine. I feel a weight has been lifted and I can rebuild. Thank you for all your arduous work and patience, Gabriel, Ahren, and their teams are knowledgeable and efficient. Read more
Google Review

Katey Huntley

Responsive, friendly, kind, extremely easy to work with! So knowledgeable and made this entire process painless. Very grateful!

Google Review

Lynn Molina

Gabriel Hanna, Esq and the staff at BLC helped me in a very difficult time. I appreciate all the help and care they gave my case.

Google Review

Linda Cramer

I can’t say enough of how much this bankruptcy law firm helped me with my financial situation. They were all so helpful, efficient and made the difficult time and process as quick and easy as possible. I would recommend them to anyone I know and am glad to give my public recommendation as well. T...hey truly deserve a five star plus rating. Read more
Yelp Review

Andrea N.

I am very happy with my experience with BLC. Bankruptcy is not something anyone wants to go through, however everyone at BLC made my experience pleasant and easy. The process was explained thoroughly and I had an easy time reaching out and connecting with my attorney. Anika Renaud-Kim was my attorney ...and she was nothing short of amazing! She was very patient and generous with her time. Ms. Renaud-Kim definitely made me feel at ease and comfortable through the entire process. Read more
Facebook Review

Lidia Paramore

they did a great job for me, helped me anytime I needed something, my Lawyer Gabriel Hanna is the best, gave lots of confidence all the time..thanks BLC I will.always recommend you, I’m very grateful for your service!!!

Yelp Review

Rachael C.

When searching for information I had called a few different firms and received consults. BLC was the only one who didn’t shy away and provided answers and information during the consult. Once I agreed to move forward, they were supportive, informative, and eased my anxiety through the whole process.... I can’t recommend them enough. Read more
Google Review

Emily Martinez

AmazingI had many questions and uncertainties and the carefully explained it all and made it easy to understand. They facilitated a fast and easy process making this scary difficult thing simple

Ready To Eliminate Your Debt?

Bankruptcy is still the best option. Other debt plans make promises, but only bankruptcy delivers.




1230 Columbia St. #1100 San Diego, CA 92101


11500 Olympic Blvd., 4th Floor Los Angeles, CA 90064


380 South Melrose Drive #308 Vista, CA 92081
© 2023 Bankruptcy Attorneys. All Right Reserved.

Legal Disclaimer: The Bankruptcy Law Center is a California Licensed law firm with attorneys licensed in the state of CA, NY. Attorney Ahren Tiller is responsible for this advertisement. Bankruptcy Law Center’s principal office is located at 1230 Columbia st. Suite 850 San Diego, CA 92101. Prior results listed on this site do not depict or in any way infer a prediction or outcome.We are a debt relief agency proudly providing options to people with financial problems. View our Privacy Policy

© 2023 All Rights Reserved.